54 AFRICAN COUNTRIES

Principle Economic Sectors of Cote D'Ivoire

Ivory Coast is the world's largest producer and exporter of cocoa beans and a significant producer and exporter of coffee and palm oil. The economy is therefore highly sensitive to fluctuations in international prices for these products, and to a lesser extent in climatic conditions. The government has made several attempts to diversify their economy but still it heavily relies on agriculture and related activities, engaging roughly to about 68% of the population. Since the year 2006, oil and gas production have become an important for the economy than cocoa. According to the statistics provided by IMF, earnings from oil and refined products were $1.3 billion in 2006, while cocoa-related revenues were $1 billion during the same period. Ivory Coast's offshore oil and gas production and has resulted in the substantial crude oil exports and provides sufficient natural gas to fuel electricity exports to Ghana, Togo, Benin, Mali and Burkina Faso

A number of private companies have come into the business of oil exploration continues offshore and President GBAGBO has expressed hope that daily crude output could reach 200,000 barrels per day (b/d) by the end of the decade.

Sector % age Contribution to GDP(2007) Agriculture,forestry and fishing 19.00% Export Crops 6.10% others 3.00% Manufacturing  17.0% Construction 4.40% Transport and Trade 17.20% Government Services 13.60% Other Services 18.90%

Agriculture

Located in the tropical region with fertile soil and plenty of rainfall, Ivory Coast relies largely on agricultural development and is very sensitive to price fluctuations and weather conditions. The agricultural sector in the Ivory Coast employs the majority percentage of the working population and produces the majority proportion of the country’s GDP and exports. The primary products are cocoa and coffee which along with timber, cotton, pineapples and bananas are the main export crops. The other prominent products include palm kernels, corn, manioc (tapioca), sweet potatoes, sugar and rubber. The processing of edible oils, sugar, cassava, fruit juices and cocoa by-products makes an important link with the agricultural sector.

The Ivory Coast is the world’s leading cocoa bean exporter. Through reforestation, the Ivory Coast plans to stabilize its cocoa growing areas. Producers in the industry are supported by an agency, ANADER (national Rural Development Support Agency). Problems were encountered by the cocoa producers including insects, fungi, viruses and parasites. ANADER intends to popularize and increase plantation of the High Amazon and Trinitarian hybrids of the cocoa bean.

The production of meat in the Ivory Coast does not provide for the local demand due to poor livestock breeding.
Timber is one of the Ivory Coast’s most prominent export products. However, reforestation is not keeping up with the depletion of timber species.

External trade and investment

Foreign direct investment (FDI) plays an important role in the country’s economy. It accounts for between 40% and 45% of total capital in the Ivorian firms. France has overwhelmingly the most important foreign investor. In recent years, the French investment has accounted for about one-quarter of the total capital in Ivorian enterprises and between 55% and 60% of the total stock of foreign investment capital.

The stock market capitalization of listed companies in Cote d'Ivoire was valued at $2,327 million in 2005 by the World Bank.

Oil and gas Sector

The West African state is known more as an oil refining country rather than as a oil producing one. While it does not have the prolific offshore oil fields of Nigeria, it does possess a modest upstream oil industry.

The recoverable oil reserves in West Africa state has been estimated at 100 million barrels and recoverable gas reserves at Tcf. Oil producing fields are Lion and Panthere (condensates).

The oil company, Petroci, a government enterprise was established in 1975. The organisation was restructured in year 1998 and four new entities were created: Petroci Holding, a fully state-owned company that is responsible for the state's portfolio management in the oil sector and the three subsidiaries :

1.Petroci Exploration-Production which is responsible for the upstream hydrocarbon activities,

2. Petroci-Gaz, responsible for development of the gas sector and

3.Petroci Industries-Services which is responsible for all other related services. Forty-nine percent interest in the three subsidiaries is available to private sector investors.

The gas reserves discovered in the 80’s have begun to be developed and utilized. The main fields  in Ivory Coast are Panthere, Kudu, Eland, Ibex, Gazelle and Foxtrot. The Ivory Coast is poised to become a regional gas exporter.

The sector in the downstream is an important part of the economy. Ivory coast has a complex refinery at Abidjan with an adjacent bitumen plant. The interest in both plants has been scheduled for privatization. The refinery receives crude via pipeline from the Lion and Panthere fields. It also receives crude from Nigeria. A major pipeline project from Côte d’Ivoire to Cameroon is being planned.

Manufacturing

At the time of independence, Ivory Coast manufactured little more than timber by-products, textiles, and food processed from local agricultural products. A very little of which was exported. The lack of an indigenous, skilled labor force, inexperienced management, and low domestic demand limited industrial growth.

The period shortly after the independence, light industry became one of the most rapidly growing sectors in the economy. The manufacturing sector has grown at a very average rate of 13 percent per year since independence.
The government formulated a new investment code in year 1984 which was subsequently altered in 1985, provided bonuses for exports and by reforming tariffs, which served to shelter elements of an already overprotected and inefficient industrial sector.

In 1987, the government of Ivory Coast adopted an additional measure which was originally proposed by the United Nations Industrial Development Organization (UNIDO) to help expand exports and make industry more efficient. This new policy proposed modernizing import substitution industries, manufacturing new products with high added value for export, and expanding the existing range of agriculture-based, export-oriented industries.

Most rapidly expanding imports were substituted in the industries like textiles, shoes, construction materials (such as cement, plywood, lumber, ceramics, and sheet and corrugated metal), and industries processing local agricultural raw materials (such as palm oil, coffee, cocoa, and fruits).

For Further Reference

African Economic Outlook

BBC News